14. Related Party Transactions

12 Months Ended

May 31, 2012

Related Party Transactions

14. Related Party Transactions

14. RELATED PARTY TRANSACTIONS:

The Company has entered into transactions with ESA Electronics Pte Ltd., or ESA, in which the Company owned a 12.5% interest at May 31, 2011 and 2010. In June 2011, the Company sold its investment in ESA for approximately $1.4 million, recording a gain of approximately $1.0 million. ESA purchased goods from the Company for $11,000 and $34,000 during fiscal 2011 and 2010, respectively. In addition, the Company purchased goods from ESA for $2,000 and $3,000 in fiscal 2010 and 2009, respectively. There were no goods purchased from ESA in fiscal 2011. At May 31, 2011 and 2010, the Company had no amounts payable to ESA. At May 31, 2011 and 2010, the Company had no amounts receivable from ESA.

Mario M. Rosati, one of the Company’s directors, is also a member of Wilson Sonsini Goodrich & Rosati, Professional Corporation, which has served as the Company’s outside corporate counsel and has received compensation at normal commercial rates for these services.